Tullow Oil OK With Disclosure Of Uganda Oil Deal Details -Exec

11th Jun 2010 08:28

KAMPALA, Uganda (Dow Jones)--U.K.-based Tullow Oil PLC (TLW.LN) would not object to the disclosure of oil production sharing agreements signed with the Ugandan government, a company executive said Friday. According to Brian Glover, the general manager of Tullow Oil Uganda Ltd., the country's government is free to release details of its oil production sharing agreement in order to promote transparency as the country prepares to start oil production. "We cannot be upset about the disclosure of the agreements because they include information on how we are supposed to go about our work and the revenue sharing proportions," he said in a presentation. Activists and politicians have asked the government to reveal the details of the oil deals, though so far the government has declined while citing confidentiality clauses. Tullow Oil is the sole owner of Uganda's block 2 and is the co-owner of blocks 1 and 3A with Heritage Oil PLC (HOIL.LN). At least 2 billion barrels of oil have been discovered in the three blocks. Tullow Oil is still waiting for government's approval of its proposed takeover of Heritage Oil's stake in the two blocks. The up to $1.5 billion deal has been awaiting government approval since February. People familiar with the situation say that disagreements over a capital gains tax on the deal are to blame for the delay. Tullow has proposed to partner with China's Cnooc Ltd.(CEO) and France's Total SA (TOT) to develop the oil assets, the partnership is also awaiting government's approval. --By Nicholas Bariyo, contributing to Dow Jones Newswires; 256-75-2624615 [email protected] (END) Dow Jones Newswires June 11, 2010 03:28 ET (07:28 GMT)